**Stellantis Faces Challenges Amid Sales Decline and Product Shortages**

Stellantis, a major global automaker, is striving to rectify its faltering U.S. sales and overcome various operational issues. CEO Carlos Tavares addressed the situation, admitting responsibility for both the company's setbacks and successes. This statement follows a reshuffle in management, including the departure of the chief financial officer and regional chief operating officers for North America and Europe.

The formation of Stellantis in 2021 from the merger of PSA Peugeot and Fiat Chrysler Automobiles introduced complexities that the company has been navigating ever since. Struggles in both the European and U.S. markets have impacted the firm's performance. In the U.S., for example, sales in the third quarter plummeted by 20%, contributing to a 17% decline over the first nine months of the year. The rest of the U.S. auto industry experienced a contrasting trend, with a 1% increase in sales from January through September.

Inventory levels in the U.S. further highlight Stellantis' challenges. By June, dealer inventory had surged to over 430,000 vehicles. While this number has since reduced by 52,000, Tavares aims to lower it further to below 350,000 by Christmas for a "fresh start" in the new year.

The company's issues are also pronounced in Europe, where it faces decreasing government subsidies for electric vehicles and competitive pressure from Chinese manufacturers. Efforts to boost electric vehicle sales are part of a larger goal to cut greenhouse gas emissions by 55% by 2030. The European Union's planned tariffs on imported Chinese EVs add another layer of complexity to this endeavor.

Feedback from dealers underscores some of Stellantis' internal problems. David Kelleher, who owns a Stellantis dealership near Philadelphia, expressed concerns over inventory levels and product lineup. Currently having a 4 1/2 month supply of certain models, Kelleher noted that he had to pivot to selling more used cars due to a shortfall in new vehicle sales. He emphasized the need for Stellantis to shift focus towards building gas-powered and hybrid vehicles that align with current consumer demand, suggesting that the current emphasis on electric vehicles may be premature due to inadequate charging infrastructure.

Compounding these challenges are ongoing labor issues. In Italy, a union has scheduled a one-day strike to protest production cuts, while the United Auto Workers in the U.S. are threatening strikes at several plants, citing broken commitments by the company.

Industry experts suggest that Stellantis' product lineup is not adequately meeting market demands. Ivan Drury from Edmunds pointed out that many U.S. buyers are now seeking practical and affordable vehicles, a segment where Stellantis has limited offerings. Their vehicles typically remain on dealer lots for 100 days before selling, which is twice the industry average.

With an outdated product lineup and few recent updates to popular models like the Ram pickup, the company is facing significant uphill battles. Although there are plans for newer models, including a small electric Jeep projected to cost around $25,000, these offerings are not yet available.

Overall, the issues plaguing Stellantis are multifaceted and complex, requiring decisive and strategic actions to navigate through this turbulent period.